DEBT |
3 Months Ended |
|---|---|
Mar. 31, 2025 | |
| Debt Disclosure [Abstract] | |
| DEBT | NOTE 5 – DEBT
As of March 31, 2025 the Company held short-term debt of $100 thousand (the “unsecured notes”). The Company did not hold any long-term debt as of March 31, 2025 or December 31, 2024. The unsecured notes bear interest at a rate of 20.0% per annum, payable, at maturity, and mature one year from issuance unless the holder elects to extend the maturity for one additional year. Prepayment is not permitted.
The unsecured notes generally rank pari-passu relative to other unsecured obligations. As of March 31, 2025, $100 thousand of unsecured notes were outstanding and all are due and payable during the year ended December 31, 2025 to the extent holders do not elect to extend one additional year.
Interest expense on unsecured notes of $6 thousand and $15 thousand was incurred during the three months ended March 31, 2025 and 2024, respectively, and was recorded as accrued expenses in the condensed consolidated balance sheet. No significant third-party financing costs were incurred because the Company managed the issuance of the unsecured notes internally, without use of an underwriter or trustee. Based on their short duration, the fair value of the unsecured notes as of March 31, 2025 approximates their carrying amounts. Substantially all of the Unsecured Notes were due and payable during the three months ended March 31, 2025 to the extent holders do not elect to extend one additional year.
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